Betting Odds Meaning
If you want to Learn What Sports Betting Odds Means and the world of gambling to become a good professional, you will have to learn is to know how the odds are calculated in sports betting. With this information, it will be easier for you to analyze sporting events and you will have a bonus when it comes to betting successfully.
The calculation of the probabilities is linked to the world of betting. This means that the bookmakers put different odds on the different outcomes taking into account the probabilities of things happening.
That is, if something is very likely, its quota is very low, while if something is very unlikely, the quota is really high. Of course, in the world of sports, anything can happen. All this means that the odds and the calculation of probabilities always go together when calculating the odds of the different sports bets.
Table of content:
- Betting Odds Meaning
- Explaining American, Decimal, & Fractional Odds?
- What is implied probability?
- Probability% = 100 ÷ Odd
- What are Decimal odds?
- Profit = stake x (odds – 1)
- Winnings = (Wager x Decimal odds) – Wager.
- What are Fractional odds?
- Profit = Amount Staked x Fractional Odds
- Decimal odds = Fractional odds + 1
- What are the American odds?
- Push – What does it mean?
- Interested in finding some favorable odds?
Explaining American, Decimal, & Fractional Odds?
Odds are inversely proportional to the estimated probability of victory; that is, if we bet in favor of a competitor who has a low odds, they will have a higher probability of victory and, conversely, if we bet in favor of a competitor who has a high odds, their probability of victory will be lower.
Before proceeding, it would unfair not to know what probability of victory, or implied probability as commonly known is all about?
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What is implied probability?
From a strictly mathematical point of view, the quotas can be understood as the period of the event to which they refer. For example, if in a confrontation between two teams, say Real Sociedad and Betis, the odds of Real Sociedad’s victory is 2, it means that -for the bookmaker- out of every 2 times these two teams meet in identical conditions to the current ones, in 1 the Real will win, and in the other, it will tie or be defeated. If the odds were 3, it would mean that Real would win in 1 out of 3 matches with Betis, if 4 out of 1 in 4, etc.
In this way, estimating the implicit probability in a betting odds is as simple as calculating the inverse of the odds. In simple terms, to know the probability percentage we must divide 100 by the odds offered by the bookmaker:
Probability% = 100 ÷ Odd
Keeping this in mind is absolutely essential when betting. The future outcome of a sporting event – at least in legal bets – we cannot know for sure. Even if FC Barcelona or Real Madrid play against the bottom of the first class, there will always be a priori possibility. Even if it is small, that the weakest team will defeat the strongest.
Therefore, before the end of a match at most, we can manage the probability that some of the possible events – home win, away, draw, goals scored, etc. – actually happen.
It is this probability that tells us when a bet makes sense, and when it doesn’t.
It makes sense to bet only if we believe that the actual probability of that event occurring is greater than the implicit probability of the odds. With the previous example, in the face of odds 2 of the victory of Real Sociedad, it’ll make sense to bet on this result if we believe that the real probability of the game ending in this way is greater than 50%. We will only be profitable in the long run on directional bets if we follow this rule.
How to make these estimates falls within the methodology of each forecaster or tipster and is outside the purpose of this article, but in any case, knowing what probability the bookmaker assigns to a result is easy to know through this simple calculation.
So, when we bet at a high odds -8 or more- we are facing highly unlikely events, and that only with a good long- term betting strategy, selecting the odds very well, can we be successful.
What are Decimal odds?
In the bookies, we can find quotas in various formats. The most common type of fee is the decimal format. The fee is presented as a whole number or decimal. It is obtained by dividing 1 by the probability of victory. Otherwise, you refer to it as an implied probability.
For example, if a bookmaker assigns Nadal a 50% probability of victory in a match against Djokovic, the odds that will appear will be 2 (1/50%).
If you want to calculate your own quota, all you have to do is divide 1 by the probability you estimate for an event. For example, if you think that Nadal’s probability of victory against Djokovic is 60%, according to your estimate the correct odds should be 1.66 (1/60%).
When the quota offered by the room is better than the one you have calculated, the bet will have value and you can make it if you deem it appropriate.
Imagine that you bet #500 in favor of Nadal. The fee lets you know how much money you can win if the Spanish tennis player beats the Serbian. To calculate the profit, we apply the following formula:
Profit = stake x (odds – 1)
Therefore, if Nadal wins, our net profit will be #500 (#500 x (2-1)). That is, we will receive #1000 in our account (the #500 that we bet, plus the 500 won with the bet).
Using the direct wager option, your winnings is calculated thus;
Winnings = (Wager x Decimal odds) – Wager.
So to say; In a game between Nadal and Djokovic, the odds given is 2.40 to 1.61
If you intend using #500 for your stake on Nadal, your winning profit would be calculated as;
#500 x 2.40 – 500 = #700
The same is calculated for Djokovic, with #500 as the potential wager;
#500 x 1.60 – 500 = #300
What are Fractional odds?
On the other hand, in British bookmakers, they use another system to forecast the odds of an event that they call fractional odds. The fees are in the form of a fraction. In them, the numerator indicates the winning units and the denominator the units wagered.
You can calculate the possible profits using fractional fees, we have to apply the following formula.
Profit = Amount Staked x Fractional Odds
Let’s look at an example. In the Nadal-Djokovic match, Nole has a 9/10 English odds. If we bet #500 in favor of the Serbian and he wins the match, our profits will be (#500 x 9/10) = #450
If you feel more comfortable using decimal odds, you can convert a fraction to a decimal using the following formula:
Decimal odds = Fractional odds + 1
In the example above, Djokovic’s 9/10 odds would correspond to the following decimal odds: (9/10) + 1 = 1.90.
What are American odds
In American bookmakers, the odds have a third format, the American odds. American odds are common in typical North American sports, such as baseball or American football. They can be expressed as a positive or negative number.
The negatives indicate how much to bet to get a profit of 100 units and the positive ones show the profit corresponding to a bet of 100 units of currency.
In decimal format, the positives are those greater than 2, and the negatives, those less than that quota.
To calculate the benefits, we have to use the following formulas:
Profit = (amount bet x odds) / 100
Negative odds should never have a minus sign when calculating.
Let’s see the examples. In Nadal and Djokovic’s match, the Spanish quota would be +100 and that of the Serbian -90. If we bet #500 on Nadal and he wins, our profit would be (500 * 100/100 =) #5,000. On the other hand, if we bet #500 on Djokovic and he beats Nadal, our profit would be (500 * 90/100 =) #450
If we want to pass a quota from American format to decimal, we have to use the following formulas:
Decimal odds = 1 + (American odds / 100)
In the formula, negative American odds values do not have a minus sign.
Nadal’s odds (+100) in decimal format would be (1+ (100/100) =) 2. And Djokovic’s (-90) would be (1+ (90/100) =) 1.90.
Push – What does it mean?
Although this doesn’t technically affect sporting odds, you can, however, not write it off from affecting your payout. Hence, it is important that every sports-betting player that the capacity to understand what a push actually is, before placing their first wager on any sports odds.
So, what’s a push?
In simple language, a push is what is defined as a tie or draw.
It’s quite obvious that you won’t find pushes when wagering on money lines. However, for a sport that allows a game to end in a draw-tie, you have the opportunity to bet on such an outcome. You have the capacity to bet on a pushing when your wager is spread across different options or when you place a totals bet.
More so, failure for a push to occur would mean that your stake would be returned since it’s not classified as a win or loss.
With points spread, you stand the chance to include half a point to every given number to ensure that you don’t have a push. But then, this case isn’t always available. Here’s a sample of what we are talking about.
In a match build-up between Ottawa Hawks and Washington Lakers, the first gets an odd of +2(-110), while Washington Lakers get an odd of -2(-110).
If the game was to end in 20-18, it’ll be agreed that neither of the team was able to cover the spread, thus, considering it as a push. You’ll refund your money and you’ll consider that the wagered stake never existed.
Interested in finding some favorable odds?
Having gone through this and taken your time to learn about what betting odds are, it is time to put your knowledge to good use. The fact that you’re informed about how sporting odds operate gives you an edge to be a better bettor.
So step out there and begin to make use of your vast knowledge. However, it is important to know that not every sport is the same. Ensure to learn about the details on how to bet on sports before placing your first wager.
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